Harman International Acquires Premium Audio Business from Masimo for 350 Million 

Masimo has agreed to divest its consumer audio business—acquired in 2022 as Sound United—for $350 million, selling brands like Bowers & Wilkins, Denon, and Marantz to Harman International, Samsung Electronics’ premium audio subsidiary. This strategic retreat enables Masimo to refocus on its core medical-technology operations and quell investor backlash over its non-healthcare acquisitions. Meanwhile, Harman International bolsters its already robust portfolio (including JBL, AKG, and Harman Kardon) through this transaction, reinforcing its leadership in the global consumer audio market and setting the stage for accelerated integration of high-end audio technologies into smartphones, automotive systems, and home-theater products.

Masimo Exits Consumer Audio to Refocus on Healthcare

Masimo’s decision to sell its struggling consumer audio arm follows intense investor criticism that the $1 billion Sound United acquisition in 2022 diluted its medical-technology focus and eroded shareholder value. Politan Capital Management, an activist investor, leveraged this dissatisfaction to secure board seats and ultimately replace founder-CEO Joe Kiani, pushing for a strategy centered on Masimo’s core competency in advanced patient-monitoring devices. Under new leadership, Masimo has prioritized biomedical innovations, such as noninvasive sensors and wearable health monitors, and deemed its audio venture a distraction from long-term growth drivers.

The $350 million sale price to Harman International represents a retreat from retail electronics and a reaffirmation of Masimo’s commitment to healthcare. It underscores a broader trend among med-tech firms to divest non-core assets when confronted with product-line overextension and activist-investor pressure. The transaction is expected to close by the end of 2025, pending regulatory approvals, allowing Masimo to reallocate capital toward R&D in pulse oximetry, telehealth platforms, and other high-margin medical segments.

Profile: Harman International’s Premium Audio Empire

Harman International traces its roots to Sidney Harman’s 1953 founding of Harman Kardon, later expanding through strategic acquisitions of JBL, AKG, and Studer to become a diversified audio powerhouse. Publicly listed in 1986, the group broadened its portfolio over the ensuing decades, adding consumer-electronics brands like Infinity, Lexicon, and Martin Professional, and branching into automotive audio and professional sound systems.

Samsung Electronics acquired Harman International in 2017 for $8 billion, retaining its independent identity while injecting resources for software, cloud services, and connected-car audio ventures. Under Samsung’s ownership, Harman International has accelerated integration of audio technologies, such as noise-cancellation algorithms and multi-room wireless platforms, across smartphone, TV, and automotive lines. The addition of Bowers & Wilkins, Denon, Marantz, Polk Audio, Definitive Technology, Classé, HEOS, and Boston Acoustics from Masimo further cements its status as the preeminent global provider of premium audio solutions.

Strategic Rationale for the Acquisition

By acquiring Masimo’s Sound United brands, Harman International gains coveted retail-channel access—Best Buy, specialty hi-fi stores, and e-commerce platforms—thereby expanding distribution for its core JBL and AKG offerings. This deepens its reach into both enthusiast audiophile segments and mass-market consumers, enabling cross-sell opportunities leveraging Samsung’s hardware ecosystem.

Moreover, automotive remains a key growth corridor: Harman International powers in-car audio for nearly all major OEMs. Integrating Bowers & Wilkins and Denon elevates its luxury-vehicle partnerships—think Rolls-Royce and Mercedes-Benz—where brand prestige and sound quality are paramount. This deal thus advances Harman International’s “premiumization” strategy, marrying technical excellence with lifestyle cachet.

Market and Financial Implications

Consumers can expect limited impact on existing warranties and product support: Harman International has committed to honoring post-sale obligations for Masimo-owned brands, ensuring continuity for end users and avoiding channel disruptions. Financially, the $350 million cash infusion strengthens Samsung’s consolidated audio unit, which projects consumer-audio market expansion from $60.8 billion in 2025 to $70 billion by 2029.

From Masimo’s perspective, the divestiture will reduce operational complexity and shore up its balance sheet, facilitating further investment in telehealth and precision monitoring. Shareholders, previously burned by the Sound United misstep, are likely to view this refocus positively, potentially catalyzing a rebound in Masimo’s stock price once the deal closes.

Conclusion

Masimo’s sale of its consumer audio business to Harman International marks a decisive pivot back to medical-technology leadership, addressing investor concerns and streamlining its strategic focus. For Harman International, the acquisition enriches an already formidable audio portfolio, unlocking synergies across retail, automotive, and consumer electronics under Samsung’s expansive umbrella. As regulatory approvals advance, both companies stand to benefit: Masimo regains its innovation mandate in healthcare, while Harman International solidifies its dominance in premium audio global markets.

About the Author: Sarah Zimmerman is a seasoned crypto and Web3 news writer passionate about uncovering the latest developments in the digital asset space. With years of hands-on experience covering blockchain innovations, cryptocurrency trends, and decentralized technologies, she strives to deliver insightful and balanced news that empowers her readers. Her work is dedicated to demystifying complex topics and keeping you informed about the ever-evolving world of technology.